Wednesday, April 1, 2009

I would like to give some advices to some potential investors……if you have some cash in hand, some may think that it is a good time to save for the economic crisis… ya, I agreed. But, by keeping the money in hand, you may not get the true value of your money…..you may know that currently banks don’t provide a good FD rate, why not looking into the stock market???

The world economy is a volatile place right now. Even with the recent gains, the stock market is down substantially over the last few months and it is down almost 40% on the year (US market) and 30% (Malaysia Market). While that is cause for concern for those at or near retirement age, it might actually present a buying opportunity for those who have a longer investment horizon.

Why might this be a buying opportunity? Because it is always better to buy low and sell high. If you’re in it for the long run, you have a long time for your shares to gain value. Right now with stocks low across the board, you may be buying shares that will substantially increase in value over time.